legendary trader

Chapter 850 851 Fermentation
After a night of TV show fermentation, Enron and Arthur Andersen became popular again.

Of course, Americans or people from other countries who don’t watch financial programs don’t know about it. Even if they know, they will read it through the newspaper the next morning. However, these people are generally not interested in such financial scandals. , that is, knowing and not intending to track the information.

However, in Huaguo, a large number of netizens quickly spread the word and became popular.

Of course, most of the netizens in Huaguo do not have a Migu account, and they may not pay attention to the changes in the financial market at all, but there is no way. After the Enron incident was gradually exposed, a lot of information spread on the domestic Internet. In particular, the website of Chaofan Network Company has set up a special column to track and report the news of Enron Company.

This column once became popular on the domestic Internet in a short period of time, but with the passage of time, the little fire in Anron has gradually been extinguished.

But just this afternoon, Li Yihong got the latest information from Zhang Quan, which collected the latest news from the evening papers, TV programs and the Internet of the United States on Wednesday, and Li Yihong saw the difference from it.

In the past, the news was a bit speculative, and there was nothing solid about it, but this time it was obviously different.

Because these news are named and named, and even how it works is mentioned, and because of these reports, the US Securities and Exchange Commission directly chose to investigate Enron, which invisibly strengthened the authenticity of these reports sex.

So Li Yihong didn't check with the US side again, and Li Yihong directly handed over the information to the editor in charge of the Enron incident column, "Clarify it as soon as possible, and then go online. You must go online before you get off work today."

Worried that the popularity of the Enron incident has declined, Li Yihong also made the decision to promote the entire channel. All users who use chat software and security software will be bombarded with pop-up windows, and as much traffic as possible will be introduced to that column.

In fact, although there is still not much news about Enron during this period, after all, the popularity has gone down. During this period of time, the number of netizens who still pay attention to Enron’s column has really decreased a lot, which is less than [-]% of the peak period, and there are even people below. It is suggested that this column can be cancelled.

And Li Yihong is actually hesitating, not wanting to delay for a few days, the incident in the United States has further fermented, and it seems to involve Andersen Office.

Enron does not have any business in China, and their tentacles have not yet penetrated into China. They may have, but they can almost be regarded as non-existent.

But Andersen & Co. is different. In fact, Andersen & Co. has branches in China and is also commissioned to conduct auditing and other firm business in China. For those companies that want to be listed on the Western stock market, they must An audit report issued by an internationally renowned accounting firm like Andersen will be more likely to be recognized by overseas institutions and investors.

It should be said that Arthur Andersen's domestic business is actually doing well. Although they adopt the partnership system, the so-called head office in the United States has a weak actual jurisdiction over the branch office in China, at least in name. .

Well, because of the crazy promotion of Chaofan Network Company, within a few hours from the afternoon to the evening, most netizens in the country knew that the company called Enron in the United States had made financial fraud, and it had already been hammered. The most important thing Still, this company is ranked 500th in the world's top 16 companies.

There is a stock price trend chart of Enron in the column. There is a time-sharing chart, which uses real-time data directly, and a daily chart. Seeing the steep downward trend above, almost all the netizens who clicked on this column were deeply impressed. impression.

In less than a year, there has been a decline of more than [-]%. Almost everyone, whether they understand finance or not, knows that the shareholders of this stock must have suffered heavy losses.

Such a layout of the webpage invisibly enhanced the attractiveness of the column to netizens. Many people stopped after accidentally clicking on this column, and began to relive Enron's collapse from beginning to end.

In the trading on Thursday night, Enron’s stock price fell again under the continuous bad news. The closing price of the day was 7.08 yuan, down 11.6%. There was still no trading volume in the market, and the huge selling pressure was still accumulating , did not get released.

But for those investors who want to leave the market, the biggest psychological obstacle at this time is that the stock price has fallen to this point, why haven't large institutions entered the market to buy the bottom.

They have made up their minds to go, but in the face of the current single-digit stock price, it is really difficult to make up their minds and swing the knife.

In their hearts, they always think that there are big institutions that can look at such a low stock price, enter the market to buy bottoms, and let the stock price rebound for a while, even if it only rebounds a little.

Indeed, the absolute stock price of Enron is already very low. Under normal circumstances, after such a large drop, it is time for funds to start collecting chips.

However, during the trading hours on Friday, Enron's stock market continued to shrink and fall, but it may be that after two days of incidents, it may also be that the recent decline in Enron's stock price has been too miserable, and all shareholders have no heart to continue. Killed and fell.

On the last trading day of this week, Enron's stock price closed at 6.56 yuan, still down 7.34%, and it closed five consecutive negative days for the whole week, with a weekly drop of 38.58%.

Regardless of whether it is the Dow Jones index, the Nasdaq index, or the S&P index, there was a sharp decline on the day.

The rice stock market has finished trading for the whole week, and investors can finally take a break, especially those investors who hold Enron shares. The assets continue to shrink, and the uncomfortable mood can be imagined.

But just because the market stops, doesn't mean everyone involved is resting.

On Saturday and Sunday, Chen Fan kept receiving news from the United States that people from the United States Securities and Exchange Commission kept entering Enron's headquarters to conduct evidence collection and investigation work, and most of the employees in Enron's headquarters were told to work overtime , did not rest because of the arrival of the weekend.

Although I don’t know the progress of the investigation, the SEC only asked Enron to provide the relevant transaction contract before, but they went to collect the evidence directly on Friday. It is conceivable that they seem to have gotten some wind, worried that Enron will hide or destroy some Things, so take the initiative to come to the door.

The live broadcast vehicles of almost all the large TV stations in the whole meter are gathered at the headquarters of Enron Corporation at the moment, and the news related to Enron Corporation can be seen on the TVs in the United States almost all day long. , and drive away.

And the media also noticed that on Friday, there were only two cars and a few people coming to the door, on Saturday it became a few cars and a dozen people, and on Sunday, the number doubled again.

Obviously, the scope of the investigation has expanded without any warning. The US Securities and Exchange Commission has mobilized more resources to start investigating Enron's problems. Maybe something was found in some of the documents taken away on Friday, which is why this happened. Condition.

Now in the United States or around the world, people who follow the Enron incident no longer care about what Enron did wrong, but how big the Enron pit is and how many institutions and individual investors it will bury.

The viewers in front of the TV could also feel the seriousness of the situation from the expressionless and meticulous in-and-out of the Enron company, completely ignoring the reporter's encircling interviews.

And the current boss of Enron Company, Kenneth, has not shown up for a long time. Before this, the rich man in the United States often appeared outside and participated in various receptions to socialize, but these days he has completely disappeared. The supernatural American paparazzi tried their best to find no trace of this rich man.

Then on Sunday afternoon, rumors that Kenneth might have been taken away by the FBI began to circulate on the Internet. Although it was Sunday, the public relations team of Enron was still very dedicated this time, and promptly clarified the relevant rumors in front of reporters. It is a rumor. President Kenneth is still handling company affairs in the company, and he claims that he will take the rumormonger to court.

However, most reporters and Americans believe that this is nothing more than alarmist talk and bluff.

If Enron can survive, maybe there will be someone to settle accounts after the fall and find the original source of the rumors.

But no one thought about it anymore, because on Sunday afternoon, people from the FBI did visit Enron, and they didn't go in for a short time, and they left after more than two hours.

Perhaps this is the reason why this rumor appeared. Then in the program that night, some legal scholars analyzed that the US Securities and Exchange Commission may still be concerned about whether Enron’s finances are hiding a lot of things, especially those debt issues, because These have been exposed by the media, and now it is necessary to collect materials to determine the real data and how much money there is.

The reason why the FBI intervened at this time may be because they suspected that Enron had committed fraud. It not only issued false financial reports, but also defrauded trust fund holders through the trust funds controlled by them.

When such news spread back to the country, Chen Fan just smiled. This is the reason why everyone pushed the wall down. Once Enron Company fails to deal with those regulatory departments, it must be a bunch of bad things.

Of course, these news also made it to the "Enron Events Column" as quickly as possible, attaching boxes and boxes of documents taken away from Enron's headquarters building by the US Securities and Exchange Commission personnel, as well as FBI vehicles. Detectives coming down, still in uniform, walk into Enron's photo.

Through these photos, netizens can clearly see that outside the Enron headquarters building, people from the local police station have pulled up a blockade, and many people are still going in and out of Enron. There are statements beside the photos, including the photo shoot Information about the time and people in the photo, whether it is affiliated with the SEC or the FBI.

There is a lot of battle, this is the message of the netizens below, most of the netizens who enter the Enron column will leave their marks of their visit here.

In fact, at this time, not only the US Securities and Exchange Commission and Enron, but also the securities regulatory authorities of almost all countries in the world are holding emergency meetings to study the development of the situation.

The United States, which is considered to be the most rigorous country, has such scandals as financial fraud, and because of false accounts, it has been listed on the list of the world's top 5 companies, and its ranking is not low. What about other companies?
How many listed companies have such problems?

It can be said that the Enron incident has taken a turn for the worse this week, and the speed of fermentation has been accelerating, which has begun to cause panic in the global financial market.

For financial assets such as buying and selling stocks, if you lose money, everyone used to think that you were wrong or bad luck, but if there is a scandal about fake accounts, it is not your own problem, but being deceived and defrauded. This has violated the legal level.

On Friday, the stock markets of almost the world’s major economies experienced declines to varying degrees, and most of the stocks that led the decline were blue-chip stocks that are considered to be the market’s pinnacle. This is already very telling.

A large number of investors began to sell their stocks. They thought that a world-class company like Enron could be fake. What about other companies?

The world is as black as crows.

The purpose of their emergency meeting is of course to come up with something before the market opens on Monday to stabilize the confidence of the market and not let this worry continue to ferment.

The stock market is a confidence market. When investors in the market are full of confidence in the company and the country, the stock price will generally rise, but when this confidence is shaken, most investors will choose to turn around and leave without mercy.

The fermentation of the Enron incident did not affect the rise or fall of a company's stock price, but triggered a chain reaction. Almost all blue-chip stocks were affected to varying degrees. Selling orders continued on the market, and stock prices continued to fall.

The Huaguo Shencheng Stock Exchange fell at the opening of the market on Monday. Although the spokesperson of the Huaguo Securities Regulatory Commission conveyed the spirit of the weekend meeting, the market's worries cannot be put down with a meeting or a resolution.

At the same time, not only Huaguo, but also island countries and surrounding Asia-Pacific countries with earlier opening times, the stock market opening trend is very bad.

In the afternoon, the European stock market opened for trading and continued the downward trend.

It can be said that because of the explosion of Enron, global stock markets have suffered, and confidence has been shaken to varying degrees.

As long as investors observe carefully, they will find that in such a downtrend, most of the stocks leading the decline are listed companies whose financial reports have been audited by Andersen.

On Monday night, when Chen Fan was having dinner at home, he received a call from Zhang Quan again. Needless to say, there must be some important news, otherwise he would not have called at this time, just wait a while, and Chen Fan would To go to the headquarters of Oak Tree Capital, he can board for an hour or two.

After all, the U.S. stock market is not open for trading right now.

(End of this chapter)